The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.
If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)
You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2024 expenses".
Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.
Q. Is the school really paying the tuition reported in box 1?
A. That's a little unclear. But, apparently, No, if you are paying with your own earned income (reported on a W-2 and taxed). It's strange they would do it that way.
Q. So I even file the 1098T?
A. Yes, in order to claim the LLC, you must report that you received a 1098-T. But, you can modify it.
Q. Do I just list the box 5 amount to answer the question about amount already included in W2 income.
A. Yes, if the full box 5 amount matches the W-2. That's the official way to handle it in TurboTax. But, just adjusting the numbers at the 1098-T screen is easier.
